VANCOUVER, Jan. 15, 2020 /PRNewswire/ - American Hotel Income Properties REIT LP ("AHIP", "the Company") (TSX: HOT.UN, HOT.U, and HOT.DB.U) announced today a cash distribution of US$0.054 per limited partnership unit ("Unit") for the period of January 1, 2020 to January 31, 2020, which is equivalent to US$0.648 per Unit on an annualized basis. The distribution will be paid on February 14, 2020 to unitholders of record at the close of business on January 31, 2020.
The policy of AHIP is to pay cash distributions on or about the 15th day of each month to the unitholders of record on the last business day of the preceding month.
AHIP is also pleased to confirm that for 2020, based on the Company's estimates of taxable income, 40% of AHIP's distributions will continue to be considered return of capital and 60% will continue to be considered taxable. Unitholders and potential investors should consult their own tax advisors for advice with respect to the tax consequences of an investment in Units based on their particular circumstances.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.U), or AHIP, is a limited partnership formed to invest in hotel real estate properties across the United States. AHIP's portfolio of 79 premium branded, select-service hotels are located in secondary metropolitan markets that benefit from diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG, Wyndham and Choice Hotels through license agreements. The Company's long-term objectives are to build on its proven track record of successful investment, deliver reliable and consistent U.S. dollar denominated distributions to unitholders, and generate value through the continued growth of its diversified hotel portfolio. More information is available at www.ahipreit.com.
Forward Looking Information
Certain statements in this news release may constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking information involves known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information generally can be identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "feel", "intend", "may", "plan", "predict", "project", "subject to", "will", "would", and similar terms and phrases, including references to assumptions. Some of the specific forward-looking information referred to in this news release includes, but is not limited to, statements with respect to: the expected record date for, and timing of the payment of, the January 2020 distribution; AHIP's expectation that for 2020 40% of AHIP's distributions are expected to continue to be considered return of capital and 60% are expected to continue to be considered taxable; and AHIP's long-term objectives.
Forward-looking information is based on a number of key expectations and assumptions made by AHIP, including, without limitation: AHIP will continue to pay monthly distributions on its Units in 2020; AHIP's taxable income will be consistent with managements estimates; there will be no adverse changes to taxation laws applicable to AHIP's distributions; a reasonably stable North American economy and stock market; the continued strength of the U.S. lodging industry; capital markets will provide AHIP with readily available access to equity and/or debt financing on terms acceptable to AHIP; and the value of the U.S. dollar. Although the forward-looking information contained in this news release is based on what AHIP's management believes to be reasonable assumptions, AHIP cannot assure investors that actual results will be consistent with such information.
Forward-looking information involves significant risks and uncertainties and should not be read as guarantees of future performance or results. Those risks and uncertainties include, among other things, risks related to the possibility that: distributions on AHIP's Units are not guaranteed and may be reduced or suspended at any time; AHIP's taxable income may not be consistent with management's estimates and expectations; applicable taxation laws may change, which may impact the taxation of AHIP's distributions in the hands of its unitholders; the summary of the tax treatment of AHIP's distributions contained in this news release is not exhaustive of all possible income tax considerations applicable to an investment in AHIP's Units, including the taxation of AHIP's distributions, and the income and other tax consequences of acquiring, holding or disposing of Units and receiving distributions will vary depending on the particular circumstances applicable to each investor and as such the tax summary contained in this news release may not accurately reflect the tax treatment of AHIP's distributions for any particular investor; and, AHIP may not realize any of its long term objectives contemplated in this news release or otherwise. Management believes that the expectations reflected in the forward-looking information contained in this news release are based upon reasonable assumptions and information currently available; however, management can give no assurance that actual results will be consistent with the forward-looking information. Additional information about risks and uncertainties is contained in AHIP's MD&A dated November 7, 2019 and annual information form for the year ended December 31, 2018, copies of which are available on SEDAR at www.sedar.com.
The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to AHIP. The forward-looking information is made as of the date of this news release and AHIP assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.
SOURCE American Hotel Income Properties REIT LP